Preferred Apartment Communities closed at $17.96 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's 1.45% gain on the day. Meanwhile, the Dow gained 0.86%, and the Nasdaq, a tech-heavy index, added 0.44%.
Prior to today's trading, shares of the real estate investment trust had gained 4.32% over the past month. This has outpaced the Finance sector's loss of 1.03% and the S&P 500's loss of 3.26% in that time.
Preferred Apartment Communities will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2022. The company is expected to report EPS of $0.23, down 25.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $102.49 million, down 15.38% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Preferred Apartment Communities. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Preferred Apartment Communities is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Preferred Apartment Communities currently has a Forward P/E ratio of 17.57. This represents a discount compared to its industry's average Forward P/E of 23.17.
It is also worth noting that APTS currently has a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. APTS's industry had an average PEG ratio of 3.99 as of yesterday's close.
The REIT and Equity Trust - Residential industry is part of the Finance sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.